Key Skills for Enterprise to Trade Internationally June 2012 - - PowerPoint PPT Presentation

Key Skills for Enterprise to Trade Internationally

June 2012

Objectives of Study

• To ensure the supply of internationally orientated skills necessary to

drive trade and export sales performance - in the key markets and for sector opportunities - as identified in the Government S t rat egy and Act ion Plan for Irish Trade, Tourism and Invest ment t o 2015.

• Ireland is one of the most open economies in the world. However, Irish

trade is geographically and sectorally concentrated. Export led growth requires a ‘ whole of enterprise’ approach to improve competiveness.

Ireland’s top 10 Trading Partners

Country Total Trade (€bn) (exports & imports % of total trade USA €57bn 20% UK €53bn 18% Germany €21bn 7% Netherlands €19bn 7% Belgium €17bn 6% France €15bn 5% Italy €10bn 4% Spain €8bn 3% Switzerland €8bn 3% China €8bn 3%

Scope of Study

• Original research involved 60 exporting companies and relevant

stakeholders to identify skills & knowledge required by enterprise(s). Assessment of relevant education and training provision completed.

• Emphasis is on the skills needs within key business function areas -

(i) management (ii) marketing (iii) sales (iv) fulfilment (v) customer service / support (vi) design and development. Integral linkages to the manufacturing / generation business function are highlighted.

Key Skills and Competencies

Global & International Management Skills Foreign Language & Cultural Awareness International Marketing Skills International Sales Skills Logistical & Distribution Skills Customer Service / Support Skills Design & Development Skills

Main Factors leading to Export Success

• Focus on meeting customer needs - defining the value proposition.
• Design & Innovation – exploiting niche, high-value opportunities.
• Talented sales and marketing people with language proficiency.
• Getting reference customers in new markets.
• Responsive customer service and quality supply chain management.
• An entrepreneurial mindset.
• A skilled and talented workforce.

International Management Skills

Challenge

• A cadre of Irish managers with international skillsets and

experience is required in order to drive additional export revenue streams with international customers, partners and suppliers. Recommendations

• Foreign Affiliates managers should build up global management

skills to lead business activities worldwide and to leverage added value business activity for the Irish operation - via CPD.

• S

ME managers to build up international management skills especially for identified weaknesses in strategic export business planning, export sales planning and market research - via CPD.

International Marketing Skills

Challenge

• Companies need a unique selling proposition. S

MEs often target too many markets, spreading their resources thinly. Currently 14%

• f Irish

companies make E-commerce sales to another EU country. Recommendations

• S

MEs to prioritise markets and sectors. Build up capacity within companies to exploit potential for international E-commerce sales.

• Companies to invest resources on the identification, management and

support of the right Channel Partner/ Agent e.g. France, China.

• S

trengthen focus within business & marketing programmes on the potential value and use of E-commerce and social media applications.

International Sales Skills

Challenge

• International sales professionals with foreign language

proficiency are a key skillset. However, sales as a profession is held in low esteem. Lack of formal international sales training. Recommendations

• Include an international sales module on 3rd level general

business and marketing courses.

• Introduce post graduate diploma courses in international sales

with foreign languages e.g German, French, S panish.

• Introduce an International S

ales Degree programme - with the active engagement and support of business.

• Ensure Business to Business; Business to Government; and

Technical S ales content included within course curriculum.

International Design Skills Capability

Challenge

• Feedback loop from the customer to the continuous improvement in the

design & development of products/ services is key. Current low level of investment by S MEs in design capability. Recommendations

• Promote awareness of the strategic value of design skills to companies.
• Consolidate and strengthen design education infrastructure at 3rd level

to develop the cross-disciplinary design skillsets required by enterprise.

• Increase in-company placement opportunities for design students to

develop their customer insight and commercial awareness.

• Introduce a design graduate placement programme for export
• rientated S

MEs – for work on new product/ service design.

Foreign Language Proficiency / Cultural Awareness

Challenges

• (1) Improved foreign language capability would act as a maj or boost to

enterprise ability to export. (2) High recognition in companies exporting but low for those exporting to English speaking countries. Recommendations

• Develop a Foreign Language Education Policy with 5-10 year horizon

vision across the continuum of primary, secondary and third level education to meet language proficiency needs of enterprise including:

• Boosting the uptake of modern foreign languages at 3rd level.
• Aligning assessment of foreign language proficiency to CEFR.
• Focusing Erasmus students placements towards study and work in

non-English speaking markets. HEA should set placement targets.

• Companies to communicate value of foreign languages for current and

future j ob opportunities to students, parents and teachers.

Specific Employment Opportunities

Challenge

• The companies surveyed employ 16,000 people and anticipate that

their employment will increase by 15% to 20%

• ver the next 3 years.

They anticipate recruitment difficulties in several key skills areas. Recommendations There is potential for conversion programmes with 2,200 places to fill difficult to fill positions within exporting companies in the wider economy:

• Computing S
• ftware Professionals (NFQ L 8 +) - 800 places.
• Customer S

ales & S ervice / foreign languages (NFQ L 6/ 7) - 800 places.

• S

ales Professionals with foreign languages (NFQ L7/ 8) - 250 places.

• Engineers (mechanical, automation, design) (NFQ L8 +) - 250 places.
• International Proj ect Management (NFQ L 7/ 8) - 100 places.

Summary

• A supply of internationally orientated skills and talent has potential

to drive trade and export sales and enhance inward investment.

• Report identifies the international skillsets that enterprises should

build up to enhance their export sales performance – and that individuals can acquire to improve their employment prospects. Foreign languages and international sales are two key skills.

• Next S

tep Implementation – Key role for Department of Education & S kills, HEA, Education & Training Bodies, Employer Bodies/ Companies, and Development Agencies.